Over the past decade, North Korea has gained a chilling reputation in the world of cybercrime. The secretive regime, led by Kim Jong Un, has turned its army of hackers into a powerful force capable of pulling off some of the largest cryptocurrency heists in history. These digital thieves have grown incredibly skilled, making North Korea one of the biggest threats to the crypto industry.
North Korea’s Rise as a Global Crypto Menace
In 2024 alone, North Korean hackers looted around $1.34 billion from cryptocurrency platforms, accounting for more than 60% of the world’s stolen crypto that year. In a single operation, they stole $1.5 billion from ByBit, a major crypto exchange, marking the largest crypto-heist ever.
But how did this impoverished nation, where most people don’t even have internet access, become so effective at stealing digital currencies? The answer lies in decades of preparation, relentless training, and a complete disregard for international rules.
The Tools and Tricks of North Korea’s Crypto-Theft Operations
North Korea’s crypto-heists are executed with a mix of sophisticated hacking techniques and old-school deception. Their operations usually follow two major steps: breaking in and laundering the money.
Breaking In: The Digital Heist
Hacking into a crypto exchange is not as simple as guessing a password. North Korean hackers use a variety of clever tricks to sneak into these digital vaults.
- Phishing Attacks: Hackers send fake emails pretending to be from a trusted company or a job recruiter. These emails contain malicious links or files. When someone clicks, the hackers gain access to their system.
- Fake Job Offers: North Korean operatives often pose as recruiters offering tech jobs. They convince software developers to download infected files during fake interviews. Once the hackers are inside the developer’s system, they can sneak into the crypto exchange’s network.
- Infiltrating Companies: In some cases, North Korean hackers apply for remote IT jobs using fake identities. By working inside foreign companies, they gain access to sensitive accounts, making it easier to steal funds.
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In the ByBit case, hackers compromised the computer of a developer working for a digital wallet provider. This gave them a backdoor into the exchange’s system, allowing them to drain massive amounts of Ethereum.
Laundering the Stolen Crypto
Stealing the money is only half the job. The next challenge is laundering it—making it harder to trace. North Korean hackers have become experts at covering their tracks by using techniques like:
- Chain Hopping: This involves moving stolen crypto between different digital currencies to confuse investigators.
- Mixing Services: Hackers use platforms known as “mixers” that blend stolen crypto with legitimate funds. This makes it difficult for authorities to distinguish between legal and illegal coins.
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- Chinese Underground Networks: North Korea often partners with Chinese crime networks to convert stolen crypto into real-world cash. These groups charge a fee but help the regime turn digital assets into usable currency.
Despite efforts by law enforcement agencies to crack down on these laundering services, North Korean hackers simply switch to new ones when their favorites get shut down.
Why North Korea Excels at Crypto-Theft
North Korea’s cyber-army has become one of the world’s most formidable hacking forces. Since the 1980s, the regime has trained gifted math students in programming and computer science, building a powerful hacking unit of around 8,400 specialists. These hackers work in relentless shifts, launching constant attacks. Unlike most state-sponsored hackers, North Koreans operate brazenly, unconcerned with diplomatic consequences. Their aggressive, smash-and-grab style makes them highly unpredictable.
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Crypto-theft is a key lifeline for the regime, helping it bypass severe international sanctions. The United Nations estimates that cyber-crime generates nearly half of North Korea’s foreign currency revenue. The stolen crypto funds its nuclear and missile programs while also financing luxury goods for the elite.
Ironically, the country’s extreme isolation benefits its hackers. With citizens cut off from the internet, the regime’s cyber-warriors work in a controlled, monitored environment, ensuring no leaks or defections.
